POWERED BY MOMENTUM MEDIA
Industry funds urge comparability on member switching
The fees, costs and performance reporting of retail superannuation funds should be aligned with those of MySuper funds to provide greater transparency when members are switched into poor performing, high cost super products, according to the Australian Institute of Superannuation Trustees (AIST).
Reflecting concerns about members receiving advice to switch funds, the industry funds body has told the Australian Prudential Regulation Authority (APRA) that such a move represents an “important baseline issue so that prudential standards may work more effectively”.
“Without such alignment, APRA cannot easily identify, for example:
• The poor value impact of conflicts of interest and other forms of misconduct on member retirement savings.
• Systemic switching of members into poor performing, high cost superannuation products.
• Whether investment performance is delivering fair value.”
Elsewhere in its submission to APRA, the AIST has pointed to issues raised before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry around superannuation funds operating within vertically-integrated structures.
It said it believed prudential standards needed to aid meeting the members’ best interests test and noted the issues raised before the Royal Commission including:
• Conflicts arising from multiple directorships.
• Conflicts associated with related party arrangements.
• Conflicts arising from a responsiveness to shareholders as opposed to members of the superannuation fund.
• Conflicts arising from entities which are the trustees of an RSE as well as the RE of a managed investment scheme.
• How conduct which is deliberately not in members’ best interest is to be addressed.
Recommended for you
APRA has warned retail super trustees that financial adviser involvement in recommending platform products does not diminish their obligations, as regulators turned the spotlight on the Shield Master Fund and First Guardian Master Fund during a meeting with fund CEOs.
AMP’s chief economist has unveiled a wish list for the Australian government’s Economic Reform Roundtable.
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
The best interests duty and new class of adviser didn't make the cut for the pre-election DBFO draft bill; however, ASFA has used its submission to outline what it wants to see from the final package.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
